- The S&P 500 dipped 0.01% on Tuesday, Oct. 17, 2023, as retail sales jumped more than expected in September, renewing concerns about more Federal Reserve rate hikes.
- Shares of Nvidia and other semiconductor companies lost ground as the U.S. planned tougher restrictions on sending AI chips to China.
- VF Corp. shares skyrocketed after activist investor Engaged Capital took a major stake in the apparel retailer and spelled out a new strategy to increase VF’s value.
U.S. equities indexes were mixed and little changed on Tuesday following new earnings releases and after the Commerce Department reported that September retail sales were much higher than estimates.
The higher-than-expected retail sales renewed concerns that the Federal Reserve could continue boosting interest rates to bring down inflation. The S&P 500 closed 0.01% lower. The retail report also helped send the yield on the 10-year Treasury note up 13 basis points (bps).
Nvidia (NVDA) shares dipped 4.7%, and shares of other semiconductor makers were also down after President Joe Biden’s administration said it would impose tougher restrictions on exports of artificial intelligence (AI) chips to China.
Moderna (MRNA) shares sank 6.1%, and shares of rival COVID-19 vaccine makers tumbled as well when Johnson & Johnson (JNJ) became the latest pharmaceutical company to report that demand for the shots was slowing. JNJ shares dropped 0.9%.